Duolingo(US:DUOL)2025-05-01 20:02User Growth - Daily Active Users (DAUs) increased to 46.6 million, a 49% year-over-year growth, while Monthly Active Users (MAUs) reached 130.2 million, up 33% year-over-year[4][11]. - Daily Active Users (DAUs) are projected to grow in the range of 40% to 45% for Q2 2025[45]. Financial Performance - Total revenue for Q1 2025 was $230.7 million, representing a 38% increase year-over-year, with subscription revenue growing by 45% year-over-year to $191.0 million[11][31][33]. - Net income rose to $35.1 million, a 30% increase compared to $27.0 million in Q1 2024[11][41]. - Adjusted EBITDA increased to $62.8 million, reflecting a margin of 27.2%, up from 26.3% in the prior year[11][41]. - Revenues increased by 37.7% from $167,553,000 in Q1 2024 to $230,743,000 in Q1 2025[65]. - Gross profit rose to $164,096,000 in Q1 2025, up 34.1% from $122,362,000 in Q1 2024[65]. - Net income increased by 30.4% from $26,956,000 in Q1 2024 to $35,135,000 in Q1 2025[66]. - Adjusted EBITDA grew by 42.6% to $62,804,000 in Q1 2025, compared to $44,005,000 in Q1 2024[70]. - Free cash flow reached $103,012,000 in Q1 2025, up 31.2% from $78,493,000 in Q1 2024[76]. Bookings and Guidance - Total bookings for Q1 2025 were $271.6 million, a 38% increase year-over-year, driven by a 44% rise in subscription bookings[11][31]. - The company is raising its full-year bookings guidance to a midpoint of 29% year-over-year growth[6]. - Duolingo expects Q2 2025 bookings to be between $243.5 million and $246.5 million, representing a year-over-year growth of 28.1% to 29.7%[43]. - For FY 2025, Duolingo projects total bookings of $1,117.5 million to $1,126.5 million, with a year-over-year growth of 28.4% to 29.4%[43]. Revenue and EBITDA Projections - Revenue guidance for Q2 2025 is set at $238.5 million to $241.5 million, indicating a year-over-year growth of 33.7% to 35.4%[43]. - The company anticipates FY 2025 revenues to range from $987 million to $996 million, reflecting a year-over-year growth of 31.9% to 33.2%[43]. - Adjusted EBITDA for Q2 2025 is expected to be between $58.4 million and $61.6 million, with an adjusted EBITDA margin of 24.5% to 25.5%[43][47]. - Duolingo is raising its full-year Adjusted EBITDA margin guidance to 28% at the midpoint, representing a 230 basis point expansion over the previous year[47]. - Duolingo anticipates a sequential Adjusted EBITDA margin expansion of about 200 basis points in Q3 2025, with further improvements expected in Q4[48]. Operational Metrics - Operating cash flow increased to $105.6 million, a 26% rise from $83.5 million in the prior year[11][41]. - Operating expenses increased by 32.6% to $140,502,000 in Q1 2025, compared to $105,923,000 in Q1 2024[65]. - The adjusted EBITDA margin improved slightly from 26.3% in Q1 2024 to 27.2% in Q1 2025[70]. Assets and Equity - Total assets increased from $1,301,728,000 in December 2024 to $1,403,146,000 in March 2025[64]. - Total stockholders' equity rose to $893,826,000 in March 2025, up from $824,550,000 in December 2024[64]. - Cash and cash equivalents increased from $785,791,000 in December 2024 to $883,996,000 in March 2025[64]. Subscriber Growth - Paid subscribers reached 10.3 million, marking a 40% increase from the previous year[11][31]. Product Development - A new Chess course will be launched, expanding the learning content beyond language[12][15]. - The Duolingo Max subscription tier is seeing increased adoption, with enhancements like 3D interactions and new features planned for the coming months[16][17]. Share Count - The fully diluted share count is expected to increase by about 1% in 2025[49]. Margin Expectations - The company expects a year-over-year decline in gross margin of approximately 150 basis points for FY 2025, an improvement from previous guidance[46].